Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Official Cash Rate unchanged

Download the full Monetary Policy Statement in PDF format from here:
http://www.rbnz.govt.nz/monpol/statements/index.html

The Reserve Bank has decided to leave the Official Cash Rate unchanged at 5 per cent.

Speaking at the release of the Bank's September 2003 Monetary Policy Statement Reserve Bank Governor Alan Bollard said "New Zealand has enjoyed an extended period of strong economic growth. Signs that growth is slowing, which will reduce inflationary pressures, have led us to cut the OCR on several occasions this year, adding stimulus to the economy.

"Our latest assessment is that the economy is continuing to cool, although not as sharply as previously thought. Exports remain under pressure, due to the higher exchange rate and a relatively slow global recovery. But domestic activity is stronger than expected with sentiment improving now that events such as SARS and the electricity shortages have dissipated. Ongoing population growth has been fuelling a sharp rise in residential and construction activity throughout the country and has supported household spending. While population growth looks likely to slow, sharp increases in property prices and a backlog of demand in the construction sector have the potential to maintain inflation pressure in the domestic economy for some time yet.

"Current monetary policy settings are consistent with medium-term inflation remaining comfortably within the target range, with the risks to inflation balanced. Although imported inflation is currently weak due to the higher exchange rate, inflation pressures remain robust across a range of domestic industries, especially housing and construction.

"Looking forward, there is a possibility that the current strength in the domestic economy proves stronger and more enduring than we are anticipating. Conversely, further appreciation of the exchange rate could potentially exert an even greater braking effect on the external sector. We will closely monitor the balance of pressures across these two sectors and their implications for the medium term inflation outlook as we update our policy outlook over the months ahead."


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Elsewhere:


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>